Arion banki receives proposal concerning financial restructuring of 1998

Arion banki has received a proposal from Jóhannes Jónsson, some international investors and the management of Hagar concerning the financial restructuring of 1998 ehf, the parent company of Hagar. According to this proposal no debts will be written off at 1998 ehf.

Arion banki needs time to weigh up the proposal and to compare it with other available options since the case is complex. This is consistent with the bank’s principle of seeking to resolve problem debt with a company's owners and management. The bank is expected to reach a decision on the proposal by mid-January.

The bank reiterates that this case is being dealt with in accordance with the bank’s rules of procedure, which in turn conform to the recently adopted Icelandic laws on actions taken for the benefit of individuals, households and companies following the collapse of the banking sector and the depreciation of the króna.